Determining whether a company's overall prices and costs are competitive requires an entire value chain analysis,which typically demands:
A) looking at the costs of a company's competitively relevant suppliers and forward channel allies (distributors/dealers).
B) considering the costs of a company's internally performed activities.
C) the use of benchmarking the costs in a company's value chain system (the costs of its suppliers,its internally performed activities,the costs of its distributors/dealers)against the costs of the value chain systems employed by rival firms.
D) the use of activity-based cost accounting.
E) All of these.

Question

Quizplus · Accepted Answer

Determining whether a company's overall prices and costs are competitive requires an entire value chain analysis, which involves looking at the costs of a company's competitively relevant suppliers and forward channel allies, considering the costs of a company's internally performed activities, using benchmarking the costs in a company's value chain system against the costs of the value chain systems employed by rival firms, and using activity-based cost accounting. Therefore, all of these options are required for a comprehensive analysis of a company's overall prices and costs competitiveness.

Determining Whether a Company's Overall Prices and Costs Are Competitive